Strong aftermarket performance and resilient global equipment demand helped Hitachi Construction Machinery deliver record first-quarter revenue despite softer sales in North America. The results highlight the growing importance of parts, services and rental businesses in supporting equipment manufacturers amid changing regional market conditions.
For the quarter ended June 30, Hitachi Construction Machinery generated revenue of 329.1 billion yen, equivalent to approximately $2.1 billion, representing a 7.5% increase from the same period last year.
Construction machinery revenue reached approximately $1.8 billion, while adjusted operating income climbed to $203.6 million, reflecting improved profitability during the quarter.
Revenue from the company's value-chain businesses, including parts, maintenance services, rentals, used equipment and related operations, increased 17.2% to $991.8 million. These activities accounted for 48% of total revenue, up from 44% a year earlier.
North American revenue declined 7.4% year over year to $413.2 million, primarily due to lower original equipment manufacturer sales. However, the company said infrastructure investment continued to support construction equipment demand across the region despite uncertainty surrounding U.S. tariff policies.
Elsewhere, demand for hydraulic excavators remained stable in Europe, while mining activity contributed to significant revenue growth in Central and South America. Revenue from those markets more than doubled to $95.5 million, supported by continued investment in hard-rock mineral projects.
Following its first-quarter performance, Hitachi Construction Machinery raised its fiscal 2026 revenue forecast by 2.8% to approximately $9.5 billion, representing projected annual growth of 4.6%.
The company also expects North American revenue to reach about $2.2 billion for the full fiscal year, an increase of 10.9% from the previous year.
The latest results reflect how construction equipment manufacturers are increasingly relying on aftermarket services, rentals and equipment support to strengthen earnings alongside new equipment sales. For contractors, fleet owners and equipment dealers, continued investment in service networks and parts availability remains an important factor as infrastructure spending and mining activity sustain demand across key global markets.
Source: Equipment Finance News.
